[B]TRADE 86 12/7/14 06:07PM EST[/B]
short position taken at 189.56 with mental SL at 189-190 and TP at 188.50, which is the bull tail at H1 from last week’s NFP results. My theory is that long tails such as that one are bound to be covered by price prior making any new significant moves. Of course, its just my theory. Anyway, good R:R too. I am looking at least 4:1 reward/risk ratio for this trade. 10:1 leverage used.
UPDATE 12/8/14 09:12AM EST[/B]
Trade still running. I made the mistake of moving my profit target from 188.50 to 188.35 to justify my decision to widen the stop loss to 190.20. Price hit original TP then pulled back to the upside. I took the opportunity to add to my positions. Added 2 mini lots at 189.19 with same profit target.
[B]UPDATE 01:58PM EST[/B]
Closed all positions manually at 188.65 for an average +84.5 pips. It was nearing the bull trend line which would be connecting to price around the 188.40-50 area. It was a few pips less than what my original plan would have made, but still a good trade since the trade didn’t go against me except for the spread difference.
In the future, i will only trade counter-trend setups like this if the trend is overextended enough and if there’s good candlestick pattern forming on the resistance area.